1 2008 Full Year Results
25 February 2009
2 Roger Carr
Chairman
3 Agenda
Chairman’s comments Roger Carr
Highlights of 2008 Todd Stitzer
Financial Review Ken Hanna
Strategic Update and Outlook Todd Stitzer
4 Todd Stitzer
Chief Executive Officer
Highlights of 2008
5 Highlights
Strong financial performance • Revenue growth of 7% • Underlying operating margins up 150 bps • Reported margin 11.9% • Pro-forma earnings per share up 16% Pure-play total confectionery business • Demerger of Americas Beverages completed • Conditional sale of Australia Beverages announced • Simplified category-led business model to strengthen in-market execution and growth opportunities
Growth or change shown on a base business, 6 constant currency basis Implementation of Vision into Action has started well
Governing Objective To Deliver Superior Shareowner Returns
Vision Be the World’s BIGGEST and BEST Confectionery Company
Performance •Organic •Total •Mid-teen •Strong •Efficient •Growth in Scorecard revenue growth confectionery trading margins dividend balance sheet ROIC of 4%-6% pa share gain by end 2011 growth
Priorities 1. Growth: fewer, faster, 2. Efficiency: relentless 3. Capabilities: ensure world bigger, better focus on cost & efficiency class quality
1.1 Category focus for scale & 2.1 Reduce SG&A cost base 3.1 Embed Building simplicity 2.2 Reconfigure supply chain Commercial Capabilities 1.2 Drive advantaged, consumer 2.3 Rationalise portfolio 3.2 Invest in science, technology preferred brands & products & innovation 2.4 Divest non-core assets & 1.3 Accelerate ‘white space’ low-growth/high-cost 3.3 Deliver preferred products market entry via Smart businesses at competitive cost Variety 2.5 Optimise capital 3.4 Streamline processes 1.4 Create advantaged management 3.5 Improve talent, diversity & customer partnerships inclusiveness via total confectionery solutions 1.5 Expand platforms through acquisition
7 Our growth priorities in action Category focus for scale and simplicity South America
• Multi-country category-led campaigns to launch improved products
• Enhanced fruit flavour candies
• Simultaneous ten country launch Halls revenue • Leveraging core Cadbury product up and consumer insights £12m
Fewer, Faster, Bigger, Better
8 Our growth priorities in action Drive consumer preferred brands
United Kingdom £25m • Re-launch of Wispa • Record launch with ~£25m sales in four months US & Canada • Building the Stride brand 7% protected market share v ‘5’ • In US, up 220 bps • US and Canada share over 7%
Fewer, Faster, Bigger, Better
9 Our growth priorities in action Smart variety initiatives
United Kingdom
• Launch of Creme Egg Twisted
• Record launch for Cadbury of a new product in the UK
• Extensions to Cadbury Dairy Milk
• Apricot Crumble
• Cranberry & Granola
Fewer, Faster, Bigger, Better
10 Our growth priorities in action Stronger route-to-market capabilities
81.9 Mexico 80 80 78.2 • Strengthened our position in traditional and modern trade 75 75 • Focus on in-store presence, improved sales networks and product availability 12.1 10 10 Results to date 6.9
• Gum share – now over 80% 5 5 • Mints – over 80% 1.4 3.0 0 0 • Strong growth in lollypops Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Cadbury Wrigley Ricolino
Source: RIE Nielsen Result: strong commercial performance
Revenue +7%
11% Chocolate +6% 11%
Gum +10%
Candy +6%
Focus brands +8% 10% Focus markets +8% 14% Focus customers +8%
9% Emerging markets +12%
2007 market share +40 bps
12 Our efficiency priorities in action Sources of annual savings
100
Central costs, SG&A and outsourcing
50
Supply chain reconfiguration % of expected annual savings
0 2008 2009 2010 2011
13 Our efficiency priorities in action Reduce SG&A cost base Americas SG&A
• Business unit rationalisation led efficiency drive
• North America: three two
• South America: two one
• 15% headcount reduction in G&A across the Americas
• Results
• SG&A as % revenues improved by around 200 bps in 2008
• Revenues grew 10%, with South America up 18%
Relentless focus on cost & efficiency
14 Our efficiency priorities in action Reconfigure our supply chain
Supply chain reconfiguration projects include:
• UK: Chocolate – programme to close Somerdale on track • First production from Poland • Poland: New gum factory online • Initiatives to leverage scale now underway • Australia & New Zealand: Chocolate and candy reconfiguration • Plan to rationalise SKUs and create ‘centres of excellence’ on track
Modest benefits in 2009 with greater contributions from 2010 onwards
Relentless focus on cost & efficiency
15 Our efficiency priorities in action Rationalise the portfolio
• Priority for businesses with high complexity or low margins • Major restructuring of price and product SKUs in Egypt
• Exited low-margin cocoa preparation down business in New Zealand 10% • Exited non-core businesses in B&I and Asia Pacific
• Target of rationalising 5% of low margin Group revenues by 2011
Relentless focus on cost & efficiency
16 Our efficiency priorities in action Divest non-core assets
• Conditional agreement to sell Gross consideration £550m Australia Beverages to Asahi for 1 £550m 2007 financials • Revenues £313m • Announced 24 December 2008 • EBITDA £33m • Completion expected in the second quarter of 2009 Multiples • Transformation of Cadbury into a • EV/EBITDA 15.2 times pure-play total confectionery • EV/Revenue 1.6 times company Benefit to Cadbury • Improves Group operating margin • Uplift to Group margin 30 bps by 30 bps Relentless focus on cost & efficiency
1. Revenues and EBITDA exclude the impact of 17 discontinued contracts Result: good progress toward our mid-teens margin goal
• Reduced Central • Mix/Leverage • Reinvestment Costs • Portfolio • Cost Headwinds • Reduced SG&A rationalisation • Reduced Supply • Underperforming 2007 Chain markets 2011
18 Result: good progress toward our mid-teens margin goal
• 180 bps contribution from Vision into Action • +190 bps from initiatives • +30 bps from portfolio 11.9% transformation
9.8% • - 40 bps from sustained investment in marketing • Minimal impact from pricing and input cost inflation • Year on year one offs broadly neutral • 30 bps from foreign exchange
2007 2008 2011 Before Re-presentation
19 Our capability priorities in action
2008 priorities • Embed Building Commercial Capabilities • Invest in science, technology and innovation • Deliver preferred products at competitive cost • Streamline processes • Improve talent, diversity and inclusiveness Results have been good • Commercial capabilities helped secure pricing • Strong pipeline of new products and technologies • Award winning marketing campaigns across our business
20 Our capability priorities in action Simplifying our organisation
• Removed regional layer
• Stronger category representation at senior levels
• Elevate and empower business unit management
• Accelerate implementation of local growth opportunities
• Leverage category leadership and Cadbury’s commercial expertise
Relentless focus on cost & efficiency
21 Result: transformed our business model and created a simplified category led organisation
Simplified organisation • Reduced costs
• Faster decision making
Maximise impact • Improved in-market execution of categories
Ensure world-class quality
22 Our sustainability priorities in action
• Cadbury Cocoa Partnership • Securing the supply of quality cocoa • Improving the lives and livelihoods of farming communities • Purple Goes Green • Best in Class in the 2008 Carbon Disclosure Project • 17% reduction in water use since 2006 • Innovative seasonal packaging reductions • Be treatwise • 95% of products labelled with nutritional information • 55% of ‘treats’ include responsible consumption messages
Performance driven, values led
23 Stars …
• India • South Africa excellent growth • South America • UK – significant market share recovery and strong performance • US – delivered excellent performance despite competitor attempts to gain share … and a little disappointing • Russia – route-to-market changes missed expectations
Strong year from the vast majority of Cadbury’s business
24 Strong delivery against our scorecard
Performance target 2008 Achievement
Annual organic revenue Up 7% Above our goal range growth of 4-6% 3 Incremental full year share Total confectionery share gain Up 40 bps gain compared to the last reported market share 3 Mid teens operating 11.9% 11.9% as reported, up 150 bps for continuing operations margin by 2011 up 150 bps using constant currencies 3 6% dividend growth, 55% Strong dividend growth Up 6% payout; above long-term target of 40-50% 3 Debt to EBITDA 2.1x and Efficient balance sheet expected to fall to 1.7x mid- 3 2009 3 Growth in return on invested capital Up 110 bps 110 bps improvement in ROIC 3 Committed to delivering our goals
25 Ken Hanna
Chief Financial Officer
Financial Review
26 Key messages
• Delivered our financial commitments in 2008
• Revenue growth ahead of goal range
• Fast start to margin progress in first full year of our Vision into Action business plan
• Well positioned to make further progress in 2009
• Strong financial position and secure long-term financing
• Price realisation in place to cover input cost increases
Our Vision into Action business plan has driven significant performance improvement
27 Basis of preparation
• Unless otherwise stated, all figures shown are for the continuing operations only i.e. excluding Australia Beverages and Americas Beverages
• We are presenting our 2008 results on the basis of the four region structure
• In 2009, we will be reporting on our seven business unit basis announced on 14 October 2008
• Slides in the appendix provide a re-presentation of 2008 revenues and operating profits on the new basis
28 Revenue and profit growth Continuing Operations
Full Year (£m) 2008 Re-presented % % Constant 2007 Reported currency
Revenue 5,384 4,699 15% 6% Underlying profit from operations 638 473 35% 22% margin 11.9% 10.1% +180 bps +150 bps Associates 10 8 Underlying net financing (89) (51) Underlying profit before tax 559 430 30% 17% Underlying taxation (156) (121) Underlying profit after tax 403 309 30% 17% Pro forma EPS 29.8p 23.0p 30% 16% Pro forma no. underlying shares 1,347 1,336
29 Another year of good revenue growth Cadbury confectionery revenue growth
Cadbury 5-year CAGR 7.4% 6.1% pa 6.3% 6.9% 5.7%
4.0% Market 5-year CAGR 5.3% pa
2004 2005 2006 2007 2008
2008 first half 7.8% second half 6.5%
30 Regional revenue growth Base business basis
£54m £324m +6% +7% £135m +10%
60% of growth
£33m £102m +4% +6%
40% of growth Developed Emerging
BIMA Europe Americas Asia Group Pacific
31 Sustained growth in emerging markets
+14% Cadbury +13% 5-year +12% +12% CAGR 12.0% pa
+9%
Market 5-year CAGR 9.7% pa
2004 2005 2006 2007 2008
Double digit compound average growth over last 5 years
32 Growth drivers: price, volume & mix
7% 7% Price realisation has been good
• Led by headline price increases
4% • Promotional frequency and depth price/mix 6% • SKU rationalisation (10%) and price/mix portfolio rationalisation impacted volumes
• Focus brand volumes up 3%
3% volume • Re-sizing strategies also contributed to volume reduction 1% volume
FY 2007 FY 2008
33 Mid-teens margins by 2011
• Reduced Central • Mix/Leverage • Reinvestment Costs • Portfolio • Cost Headwinds • Reduced SG&A rationalisation • Reduced Supply • Underperforming 2007 Chain markets 2011
34 Operating margin track Principal drivers of margin progression
+30 bps 11.9% +150 bps
10.1% +30 bps 9.8%
FY 2007 Sale of FY 2007 Constant Foreign FY 2008 Schweppes Re-presented Currency Exchange Australia Improvement
35 Operating margin track Detailed drivers of margin progression
+20bps -40bps +30 bps 11.9% +20bps +100bps
+50bps 10.1%
150 bps improvement at constant currencies
FY 2007 Supply SG&A Central Turnaround Marketing Foreign FY 2008 Chain Costs Markets Exchange
36 Operating profit and margin track £638m Performance by Region
£56m 11.9%
£14m £51m £2m
£473m £12m £30m 10.1%
150 bps improvement at constant currencies
FY 2007 BIMA Europe Americas Asia PacificGroup FX(1) FY 2008 Operating profit improvement across all regions
1 Also includes profit impact of M&A (-£4m) and change in BIC (-£1m) 37 Underperforming markets Russia, Nigeria and China
Dilution 110 bps 80 bps 70 bps
£(9)m
£(27)m
2006 2007 2008 Underperforming markets profitable but more to do
1 Contribution to Group margin improvement 38 Input cost increases
£m 2007 2008 % Current* average average Change
Commodities: rising input costs World sugar, c/lb 10.2 13.4 30% 13.2 Cocoa, £/tonne 953 1381 45% 1,740 Oil, $/barrel 73 100 37% 43 Milk, p/litre 20.9 26.7 28% 29.6 Currencies: transaction headwind Euro: GBP 1.46 1.26 -14% 1.13 US$: GBP 2.00 1.85 -8% 1.43
2009 price realisation should offset input cost inflation
* As at 20 February 2009 39 EPS drivers
Continuing ops UEPS pro forma*
2007 23.0p
Base business growth 4.6p 20%
Acquisitions and disposals (0.7)p (3)%
Change in number of shares (0.2)p (1)%
Foreign exchange 3.1p 14%
2008 29.8p 30%
* Assumes share consolidation relating to the demerger was in place for all of 2007 and 2008 40 Balance sheet and ROIC
31 Dec 2008 31 Dec 2007
Net debt £1,887m £3,219m
Net debt/EBITDA 2.1x 2.5x
EBITDA/Net interest 7.6x 7.6x
EBIT/Net interest 5.8x 5.9x
• Including the proceeds from Australia Beverages and adjusting EBITDA, Net Debt/EBITDA falls to 1.7 times • Return on invested capital up 110 bps to 7.9%
2008 EBITDA, EBIT and net interest on a Cadbury plc basis (excluding Americas Beverages but including Australia Beverages). 2007 includes both Americas Beverages and Australia Beverages Debt profile
Bond maturity profile • Maintaining BBB rating;
• Issued £350m 10-year bond at 7.25% in July 2008; £590m • €600m bond June 2009 maturity to be repaid from
proceeds of Australia £1,700m
Beverages disposal; £760m
• £1.3bn of undrawn bank Value of debt instruments
facilities £350m Total 0-1yrs 1-5 yrs 6-10 yrs
Strong balance sheet with good long-term financing
42 Technical guidance: 2009 update
2009 Guidance Comment Foreign NSV ~ +9% Assumes current exchange rates remain exchange UOP ~ +13% unchanged for the balance of the year
Includes £120m related to Restructuring ~£150m Vision into Action
Underlying Interest rate expected to reduce in 2009, ~ 6% interest rate reflecting improved financing spreads
Reflects a fall in asset values plus Post retirement £6m charge changes in actuarial assumptions at the benefits in 2009 end of 2008 used to derive the non-cash P&L charge under IAS19 - a £33m swing Underlying 28% Unchanged tax rate
Includes £100m related to Capital expenditure £360-400m Vision into Action
43 Key messages
• Delivered our financial commitments in 2008
• Revenue growth ahead of goal range
• Fast start to margin progress in first full year of our Vision into Action business plan
• Well positioned to make further progress in 2009
• Strong financial position and secure long-term financing
• Price realisation in place to cover input cost increases
Our Vision into Action business plan has driven significant performance improvement
44 Todd Stitzer Chief Executive Officer
Strategic Update and Outlook
45 Rate of developed market growth has slowed in the last six months
H1 07 H2 07 H1 08 H2 08
Average Up developed 4% market 4% 6% 2% 1%
growth Cadbury’s 2008 total sort revenue growth
Average Up emerging 12% market 13% 12% 8% 7% growth
Cadbury has grown ahead of market
Average of Cadbury’s top 5 developed and top 5 emerging markets. Growth rates taken from IRI/Nielsen and company estimates Confectionery Resilient characteristics remain strong • Consumer preference for brands remains high • Low penetration of own-label products • Small affordable treats • Stay-at-home culture • Favourable split between traditional and modern trade • Broad route-to-market helps balance strength of modern trade • Lower credit risk through fragmented customer base and higher level of cash transactions • Cadbury has particular strengths • Emerging markets exposure high – now 37% of the portfolio • Total confectionery offering
A resilient category – but not immune
47 Our Vision into Action for 2009
Governing Objective To Deliver Superior Shareowner Returns
Vision Be the World’s BIGGEST and BEST Confectionery Company
Performance •Organic •Total •Mid-teen •Strong •Efficient •Growth in Scorecard revenue growth confectionery trading margins dividend balance sheet ROIC of 4%-6% pa share gain by end 2011 growth
Priorities 1. Growth: fewer, faster, 2. Efficiency: relentless 3. Capabilities: ensure world bigger, better focus on cost & efficiency class quality
1.1 Category focus for scale & 2.1 Realise price and optimise 3.1 Operate a category-led simplicity customer investment business enabled through consistent commercial 1.2 Drive advantaged, 2.2 Reduce SG&A cost base capabilities consumer preferred 2.3 Deliver supply chain cost brands & products reduction and reconfiguration 3.2 Invest in science, technology & innovation 1.3 Accelerate white space initiatives to deliver preferred products market entry via “Smart 2.4 Rationalise portfolio at competitive cost Variety” 2.5 Optimise capital 3.3 Drive focused decision 1.4 Create advantaged management making and speed of customer partnerships via execution total confectionery solutions 3.4 Sharpen talent, diversity & 1.5 Expand product platforms inclusiveness agenda and strengthen route to market through partnership 3.5 Leverage partnerships to and acquisition streamline processes and reduce costs
48 Growth: chocolate
• Continue performance improvement in UK and Ireland • Drive further growth in India and South Africa • Strengthen route to market and innovation • Maximise efficiencies in Australia, Canada and New Zealand
£2.3bn revenues – 46% of Cadbury #1 in UK #1 in South Africa 6% growth in 2008 #1 in Australia #3 in Canada #5 global market share #1 in India #5 Globally #1 in Ireland #3 global brand: Cadbury Dairy Milk 34% of revenues from focus brands
49 Growth: gum
• Maximising benefit from innovation • Reinforcing successful product launches • Strengthening consumer preferred brands • e.g. Trident, Hollywood, Stride and Clorets • 2009 important year for product innovation
£1.6bn revenues – 33% of Cadbury #1 in South America #1 in Turkey 10% growth in 2008 #1 in Mexico #2 in US #2 global market share #1 in France #2 in Canada #1 global brand: Trident #1 in South Africa 72% of revenues from focus brands
50 Growth: candy
• Sustain global development of focus brands • e.g. Halls, The Natural Confectionery Co. and Eclairs • Smart Variety initiatives to leverage local brands
#1 in UK Revenues £1.1bn – 21% of Cadbury #2 in Australia #1 in Canada 6% growth in 2008 #3 in Brazil #1 in France #1 global candy business #3 in India #1 in Turkey #1 global brand: Halls #3 in South Africa #2 in Mexico 45% of revenues from focus brands
51 Growth: plans for 2009 Benefits of a total confectionery company • Strengthened category leadership will drive consistency
• Faster, higher impact product launches across regions
• Speed up in-market innovation programmes
• Spread and balance of categories, countries and brands provides opportunities to deliver consistent growth
• Strong presence in emerging markets
• Strength across total confectionery
• Innovation will benefit different parts of the portfolio
Fewer, Faster, Bigger, Better
52 Efficiency: plans for 2009 Relentless focus on cost & efficiency • Central and regional costs • Full year benefit from central cost reductions • Regional cost savings from our simplified structure • SG&A • Incremental benefits from the actions taken in 2008 • Supply chain • Modest benefits in 2009 • Focus on implementations in the UK, Europe and the Pacific region to maximise benefits from 2010 • Strengthen our focus on inflation and cost control
Benefits from self help should help overcome impact of adverse market conditions
53 Capabilities: plans for 2009 Streamline processes and reduce costs • Accelerate the flow through of benefits from our simplified business model
• Faster decision making
• Improved in-market execution
• Build on successful outsourcing partnerships
• IT and Finance
• HR
• Facilities management
54 2008 highlights
• Strong financial performance • Revenue growth of 7% • Underlying operating margins up 150 bps • Reported margin 11.9% • Pro-forma earnings per share up 16% • A focused pure-play confectionery business • Demerger of Americas Beverages completed • Conditional sale of Australia Beverages announced • Simplified category-led business model to strengthen in-market execution and growth opportunities
55 2009 outlook
• 2008 has demonstrated the resilience of our focused business model
• We will not be immune from the impact of economic weakness
• Vision into Action will deliver strong benefits in 2009
Revenue growth around the lower end of our goal range Good progress toward mid-teens margin by 2011
56 Xin nian kuai le
Prosperity through fortitude and hard work
57 Supplementary Information
58 Sales analysis – four region basis
Full year (£m) 2007 Base Business M&A FX effects 2008
BIMA 1,579 102 (66) 30 1,645
Europe 879 33 45 140 1,097
Americas 1372 135 (16) 140 1,631
Asia Pacific 860 54 3 85 1,002
Central 9 - - - 9
Continuing Group 4,699 324 (34) 395 5,384
Australia Beverages 394 8 - 36 438
59 Underlying profit from operations – four region basis
Full year (£m) 2007 Base M&A Change FX effects 2008 Business in BIC*
BIMA 153 30 (8) (3) 1 173
Europe 82 12 3 (2) 20 115
Americas 234 51 - 2 28 315
Asia Pacific 122 2 1 6 12 143
Central costs (118) 14 - (4) - (108)
Continuing Group 473 109 (4) (1) 61 638
Australia Beverages 24 1 - 2 2 29
Underlying profit from operations before associates, intangibles amortisation, goodwill impairment, restructuring, non-trading items and IAS39 adjustment * Business improvement costs Sales analysis – seven business basis
Full year (£m) 2007 Base Business M&A FX 2008 effects
B&I 1,258 56 (66) 21 1,269
MEA 321 46 - 9 376
Europe 879 33 45 140 1,097
North America 1,049 78 (16) 90 1,201
South America 323 57 - 50 430
Asia 275 45 - 18 338
Pacific 585 9 3 67 664
Central 9 - - - 9
Continuing Group 4,699 324 (34) 395 5,384
61 Underlying profit from operations – seven business basis
Full year (£m) 2007 Base M&AChange FX effects 2008 Business in BIC
B&I 130 15 (8)- 2 139
MEA 23 15 - (3) (1) 34
Europe 82 12 3(2) 20 115
North America 184 28 -1 18 231
South America 50 23 - 1 10 84
Asia 21 11 -3 2 37
Pacific 101 (9) 1 3 10 106
Central costs (118) 14 -(4) - (108)
Continuing Group 473 109 (4)(1) 61 638
62 Non-Trading items
Full year (£m) 2008 2007
Disposal of properties 4 -
Sale of investments 3 -
Disposal of non-core businesses (6) 17
Write down to recoverable value of - (41) asset held for sale
Gain on rebuild of buildings - 38
Impairment of China property, - (12) plant and equipment
Reported 1 2
63 Restructuring costs
Full year (£m)2008 2007
Restructuring
Restructuring - Vision into Action(142) (151)
Separation and creation of stand- (16) (5) alone confectionery costs
Gumlink (27) (9)
Acquisition integration costs(9) -
Total (194) (165)
64 Net financing
£m 2008 2007
Net interest(116) (81)
Pension credit27 30
Underlying net financing charge(89) (51)
IAS 39 adjustments 91 19
Statutory net financing gain2 (32)
65 Balance sheet
Full year (£m)2008 2007
Non-current assets5,973 8,444
Net working capital22 132
Assets held for sale less associated liabilities173 53
Net retirement benefit liability(258) 80
Provisions and deferred tax liabilities(489) (1,317)
Net borrowings – continuing group(1,887) (3,219)
Net assets3,534 4,173
Ordinary shareholders’ funds3,522 4,162
Minority interests12 11
Total capital employed3,534 4,173
66 Cash flow
Full Year (£m)2008 - 2008 2007 con’t ops Profit from operations*388 561 828 Restructuring80 71 82 Depreciation196 244 290 Other items53 52 12 Working capital(30) (70) 19 Interest (97) (139) (172) Tax (115) (153) (235) Cash generated from operations 475 566 824 Capital expenditure(410) (482) (352) Pension funding30 30 48 Net dividends 10 10 7 Free cash flow105 124 527
* Profit from operations before intangibles amortisation, goodwill impairment, restructuring, non-trading items and IAS39 adjustment Includes profit from discontinued operations ROIC progression
£m 2008 2007
UOP1 650 484
Tax2 (182) (135)
NOPAT 468 348
Invested capital3 5,910 5,151
ROIC 7.9% 6.8%
ROIC progression +110 bps
1 Underlying operating profit includes the Group’s share of associates’ profits from operations 2 Tax at 28% for both 2007 and 2008 has been applied to underlying operating profit 3 Invested capital represents the sum of average operating assets, intangibles, cumulative exceptional restructuring and of deferred tax Borrowing profile
Full year 2007 2008 Net debt maturity profile Less than 1 year 65% 37% 1-3 years 17% 8% More than 3 years 18% 55% Fixed rate debt: % total net debt 54% 71% Average length of fix 1.7yrs 2.8yrs Average interest rate 4.8% 4.6% Group average interest rate 5.6% 6.5%
• 2007 includes full period of Americas Beverages • 2008 average interest rate on confectionery business only
69 Sales, profits and borrowings by currency
Full year (£m) 2008 %
Sales generated in: US dollars 632 12% Sterling 1,123 21% Euro 684 13% Australian dollars 407 8% Other 2,538 47% Underlying operating profit* generated in: US dollars 97 15% Sterling (7) (1)% Euro 86 13% Australian dollars 77 12% Other 385 60% Net borrowings before currency swaps held in: US dollars 900 48% Sterling 270 14% Euro 679 36% Other 37 2%
* Profit from operations before intangibles amortisation, restructuring, non-trading items and IAS39 adjustment. 70 Excludes American and Australian beverages. Exchange rates
Rate vs Sterling 2007 2008 % change average average
US $ 2.00 1.85 (7.5)%
Canadian $ 2.15 1.96 (8.8)%
Euro 1.46 1.26 (13.7)%
Australian $ 2.39 2.20 (7.9)%
South African Rand 14.07 15.23 8.2%
Brazilian Real 3.89 3.35 (13.9)%
Mexican Peso 21.84 20.48 (6.2)%
71 Except for historical information and discussions contained herein, statements contained in these materials may constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. Forward looking statements are generally identifiable by the fact that they do not relate only to historical or current facts or by the use of the words “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable terminology. Forward looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward looking statements. These forward looking statements are based on numerous assumptions regarding the present and future strategies of each business and the environment in which they will operate in the future. In evaluating forward looking statements, you should consider general economic conditions in the markets in which we operate, as well as the risk factors outlined in our Form 20-F filed with the US Securities and Exchange Commission and posted on Cadbury plc’s website www.cadbury.com. These materials should be viewed in conjunction with our periodic half yearly and annual reports and other filings filed with or furnished to the Securities and Exchange Commission, copies of which are available from Cadbury plc, Cadbury House, Uxbridge Business Park, Sanderson Road, Uxbridge UB8 1DH, UK and from the Securities and Exchange Commission’s website at www.sec.gov. Cadbury plc does not undertake publicly to update or revise any forward looking statement that may be made in these materials, whether as a result of new information, future events or otherwise. All subsequent oral or written forward-looking statements attributable to Cadbury plc or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
72